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AI-generated legal risk reports could drive higher cyber claims in ransomware
Legal experts warn ransomware groups are using AI to push victims toward worst case assessments before forensics confirm what data was accessed.
Insurance Business reports that legal experts are warning of a ransomware tactic that may increase cyber claims by pressuring victims to act quickly on AI generated legal risk assessments created by attackers. The concern is that these analyses can be inaccurate or based on assumptions about what data a company holds, while incident response teams are still working to determine what happened.
According to Insurance Business, established ransomware groups have begun presenting victims with AI produced narratives about stolen data and potential regulatory consequences. The tactic is aimed at the earliest and most chaotic phase of an incident, when forensic teams may not yet have verified what information was accessed.
Kennedys legal experts say they have seen cases where an AI assessment used a worst case scenario, including maximum regulatory penalties that could theoretically apply, without accounting for the specific type of data or the mitigating factors regulators typically consider. “I would say it’s only in the last couple of months that we’ve really started to see these sorts of legal risk analyses coming to the forefront,” said partner Arran Roberts.
The article also notes that, while the AI reports can create pressure, they may still provide investigative leads. Senior associate Alexandra O’Hare said references to particular folders or information can help forensic teams identify where to look, and she cautioned that organizations often make a major mistake by notifying individuals before confirming whose data was affected and what occurred.